307 P.3d 400
Okla. Civ. App.2013Background
- United Adjustment Services appeals from summary judgment for Chubb and partial for Agency and Miller.
- United represented Madison Village Apartments, which had a Chubb commercial policy; Watkins was a Chubb adjuster.
- United, through public adjusting agreements, helped prepare claims and hired an architect and attorney without Madison's apparent knowledge.
- Madison settled with Chubb in 2005; Chubb issued settlement checks.
- United later sued Agency, Miller, and Chubb for bad faith and tortious interference; trial court granted summary judgment for Chubb and then for Miller/Agency on bad faith, with final affirmation on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of the bad faith claim assignment | Madison assigned the bad faith claim to United; assignment valid under law. | Bad faith is a tort not assignable; assignment invalid under 12 O.S. 2011 §2017(D). | Assignment invalid; bad faith claim not assignable. |
| Statute of limitations on bad faith claim | Discovery rule extends accrual when documents were produced in 2009. | Two-year limit expired; claim time-barred. | Statute of limitations expired; claim barred. |
| Bad faith claim against insurance agency and agent | Agency/Miller improperly interfered and are liable as assignees. | Insured cannot bring bad faith claim against agency/agent; not party to contract. | Bad faith claim not actionable against Agency or Miller. |
| Interference with contract claim timeliness/finality | Interference claims should survive other rulings. | Insufficient facts to grant summary judgment on timing. | Trial court’s denial on this issue due to lack of facts; appeal affirmed on other grounds. |
Key Cases Cited
- Kansas City, M. & O. Ry. Co. v. Shutt, 104 P. 51 (1909 OK) (pure tort not assignable before judgment (chose in action))
- Christian v. American Home Assurance Co., 577 P.2d 899 (OK, 1977) (insurer tort liability for bad faith; implied duty to deal fairly)
- Rose Group, L.L.C. v. Miller, 64 P.3d 573 (OK CIV APP 2003) (assignment limitations on tort claims; bad faith not assignable)
- Fidelity & Casualty Co. of New York v. Southall, 435 P.2d 119 (OK, 1967) (garnishment/settlement context for tort claims)
- Timmons v. Royal Globe Ins. Co., 653 P.2d 907 (OK, 1982) (agents/independent agencies and bad faith duties)
- Guideone Am., Inc. v. Shore Ins. Agency, Inc., 259 P.3d 864 (OK CIV APP 2011) (agency not liable for insurer's bad faith under contract theory)